Why purpose makes you a better leader

Why purpose makes you a better leader

This article is an excerpt from ‘Conscious Capitalism: Liberating the Heroic Spirit of Business’ by Wholefoods co-CEO John Mackey and socially-conscious business expert Raj Sisodia.

A higher purpose gives great energy and relevance to a company and its brand.

Google’s original purpose was to organise the world’s information and make it easily accessible and useful. As founders Larry Page and Sergey Brin said, “How can that not get you excited?”

Consider Southwest Airlines, perhaps the most successful airline in the history of the world. Southwest’s animating purpose from day one was to democratise the skies, that is, to make air travel accessible to the average person. When Southwest came into being in the early 1970s, only 15% of Americans had flown on an aeroplane; today, more than 85% have flown, due largely to Southwest’s pioneering efforts to offer low fares, bring air service to smaller markets and market it in a fun way.

Southwest has been consistently profitable since it started operations. It provides a great experience for customers. Team members love working there. The company is founded on having fun and radiating love (its stock symbol is LUV).

Whole Foods Market [where co-author John Mackey serves as co-CEO] is passionate about helping people to eat well, improve the quality of their lives and increase their life span. Our purpose is to teach people that what they put into their bodies makes a difference, not only to their health and to that of the people who supply the food, but also to the health of the planet as a whole.

From our start in 1978 as Safer Way, Whole Foods Market has promoted organic food and the agricultural systems from which it derives. By helping to develop markets, customers, distribution networks and even the national standards for labelling for organic foods, Whole Foods has also promoted the environmental benefits that accompany the increasing number of organic farms, dairies, ranches and sustainable agricultural practices.

For example, because organic farms utilise no synthetic fertilisers or pesticides, there is reduced usage of fossil fuels and less chemical contamination entering food chains and water supplies.

Purpose and meaning are now being embraced by large mainstream companies such as Unilever, PepsiCo Inc and Procter & Gamble which touch the lives of billions.

At PepsiCo, CEO Indra Nooyi has been emphasising “Performance with Purpose” by investing heavily in drinks and food products that are healthier for customers. P&G CEO and chairman Robert McDonald is seeking “purpose-inspired growth”.

He has articulated the company’s purpose as “touching and improving more lives, in more parts of the world, more completely.” Unilever CEO Paul Polman recognises the importance of connecting the company to a purpose beyond profits and growth.

“Having a deeper purpose to what we do as people makes our lives more complete, which is a tremendous force and motivator. What people want in life is to be recognised, to grow and to have made a difference. That difference can come in many forms; by touching someone, by helping others, by creating something that was not there before. To work for an organisation where you can leverage this and be seen to be making a difference – that is rewarding.”

Purpose is something we can never take for granted; the moment we do, it starts to be forgotten and soon disappears. It has to be at the forefront of consciousness (and therefore decision-making) literally all the time. When the purpose is clear, leadership teams can make quicker and better decisions. Clarity of purpose also leads to bolder decisions.

Rather than adjusting decisions according to the winds of public opinion or changes in the competitive environment, decisions in a purpose-driven company take those things into consideration while also being informed by something more soulful and sturdy. This leads to superior overall performance. Purpose-informed decision-making is a critical connection point between clarity of purpose and superior performance, financially and otherwise.

Reprinted by permission of Harvard Business Review Press. Excerpted from `Conscious Capitalism: Liberating the Heroic Spirit of Business’. Copyright 2013 Harvard Business School Publishing Corp. All rights reserved.


Notify of
Inline Feedbacks
View all comments
SmartCompany Plus

Sign in

To connect a sign in method the email must match the one on your SmartCompany Plus account.
Or use your email
Forgot your password?

Want some assistance?

Contact us on: support@smartcompany.com.au or call the hotline: +61 (03) 8623 9900.